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Scataphagos said:
Yup, that's how it works.

Some places have property tax north of 3%!

With property tax, the government siphons off a large percentage of your appreciation... and if you don't pay them, they take your house!

Where I live in Colorado, property taxes mostly run ~0.5%
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I thought you were renting the space where your trailer is parked?
 
BMK said:
Not sure I can really agree with this... the money to pay property tax comes out of your pocket, or from your wages, or from rental income collected on the property itself. It does not reduce the value of the property. Historically, in most parts of the USA, during most periods of history, real estate values have gone up over time--not down.

BMK
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Question is, would you buy stock (say pay $250,000 to buy index) if from then on you'd be subject to an annual 3% tax on the value of that stock? The value of the stock may go up or down due to the random component of the volatility but then the long term component would surely be depreciation. Weather you pay if from "your own pocket" (labor, etc) or just by selling some of the stock, the hard truth is the long term trend would be depreciation of the asset value.

Unless some other mechanism would kick in to compensate. Like inflation or Ponzi schemes (which is what most stocks are).
 
Option_Attack said:
In a low tax state like Texas, property and municipal taxes help fund a very solid and independent infrastructure. Reliable power and water are the hallmark of a safe, secure, and satisfied public. Texas' elected officials strive to make, and keep, Texas great...
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Famous last word. Texans were laughing at CA, gave us a hard time about not investing in infrastructure to take care of emergencies. :p
 
destriero said:
Toenails looking a little rough as well. Maybe I should get a mani-pedi. I don't know how easy it will be to get an appt as a first timer. I hear they always want to put clear polish on dudes but I fear it will stir some latent feelings. Maybe I should just bag it and use the wife's clipper.
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You can always us Gorilla Glue for those rough spots and use as clear polish too. It is a permanent fix.
 
Aquarians said:
Well it's significant because allows me to make a comparison with owning stocks. If you own property in the US, this level of taxation means effectively your assets depreciate by 0.5-3% per year. With stocks your asset APPRECIATES by 0.5-3% per year (dividend yield).

It's far-fetched connection but maybe there's a perverse feedback loop between stock prices and the ever-depreciating value of property. Ignoring labor as source of money, how do you pay for property taxes? Well sort of use your property as collateral to get a loan to buy stocks to get dividends to pay for taxes for the otherwise depreciating property value. So there's an incentive for the stock prices to keep going up forever, but in fact the overall value remains the same. Inflation in other words.

Anywayz, what I found out is that Americans consider normal to lose 3% of their capital every year, good to know for when I'll be selling investment advice :D
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It gets worse in California, on top of property tax some of us paid >10% state income tax and 9% sales tax, all on top of Federal taxes. Trump took away deducting state taxes and property taxes on Federal filing so it is doubly painful after Trump.

But it is a free country. We live in CA by choice, I could follow @destriero, move to Lake Tahoe for 6 month + 1 day and save a bunch, or follow Musk and move to Texas or give up my US citizenship and move to Singapore and save even more. But I think it is worth it and I am willing to help out the less fortunate. After all I cannot take things with me to the next world.
 
My family has a home in San Diego, but until recently I was in Tahoe 90% of the time. I'd post what I owe for 2020 but you wouldn't believe it. I pay taxes in two states and three counties.
 
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